Global Crisis Debate
Latest Debate Commentaries
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Reduce friction or it might break: Lessons for euro members from Latvia's exchange rate and fiscal policies (Has austerity gone too far?)
Thomas Grennes Department of Economics, North Carolina State University, USA, 29 June 2012
By Thomas Grennes, North Carolina State University, and Andris Strazds, Nordea Bank Relevance of Latvia's experience to other countries The Latvian government responded to a severe economic shock in 2008 and 2009 by implementing a fiscal austerity program that has received praise from some outside observers and criticism from others. Olivier Blanchard expressed mild approval, but he expressed...
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Latvia: Going beyond the fiscal austerity debate (Has austerity gone too far?)
Anis Chowdhury The University of Western Sydney, Australia, 27 June 2012
Latvia: Going beyond the fiscal austerity debate Iyanatul Islam and Anis Chowdhury[1] ‘What is it about Latvia’, laments Simon Wren-Lewis, that leads commentators to suspend their ‘critical faculties’ when discussing the current economic circumstances of this Baltic state?[2] Latvia is at the epicentre of the debate on ‘expansionary’ fiscal austerity. Can one...
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Development and the Crisis: The Reasoning for Humanitarian Diplomacy and International Humanitarian Interventions in Regions of Conflict, for Group 20 Meeting Mexico, June 2012, by Dr Mark Fernando (Development and the crisis)
Dr Mark Fernando Humanitarian Healthcare, 18 June 2012
Development and the Crisis: The Reasoning for Humanitarian Diplomacy and International Humanitarian Interventions in Regions of Conflict, for Group 20 Meeting Mexico, June 2012. To be sure, it is in the wider macroeconomic interests of all nation states to enable there to be humanitarian diplomacy, humanitarian healthcare initiatives and international...
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Effective fiscal instruments for the European Commission (Has austerity gone too far?)
Beatriz de Blas Universidad Autonoma de Madrid, 7 June 2012
Fines and other sanctions are an indirect and counterproductive way of eliminating deficit bias. A more direct and credible way to solve the moral hazard problems in Eurozone fiscal policy would be for each member state to delegate executive power over an effective fiscal instrument to a European budgetary authority. European debt levels now hovering around 100% of GDP represent a painful...
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Fiscal austerity and the youth employment crisis (Development and the crisis)
Anis Chowdhury The University of Western Sydney, Australia, 1 June 2012
Fiscal austerity and the youth employment crisis Iyanatul Islam and Anis Chowdhury[1] Lack of job opportunities for young people has become painfully evident in the advanced economies, and most notably in the Euro zone and the UK. This has emerged against the grim background of a lingering recession. Growth in the Euro zone has been virtually zero in the most recent quarter while...
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Indian Rupee in Crisis (Countries in crisis)
Abhishek Kumar University of Delhi, 22 May 2012
Recent fall in Rupee Vs Dollar exchange rate is quite problematic for India Rupee and I myself found it very disturbing for Indian Economy. The first image shows the recent Rupee Vs Dollar Exchange rate and one can easily see that Rupee has depreciated a lot. Surprised by the above finding I tried to dig it further. I took US and Indian CPI monthly data and tried to get some insight...
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Greece: an entirely political crisis (Development and the crisis, Has austerity gone too far?)
18 May 2012
Now that the latest attempt at forming a national government has failed, the Greeks will be voting again on 17 June. If surveys of voting intentions are anything to go by, the crisis is only just beginning to get really nasty. The example of Greece is evidence of the need for reforms to be consolidated and socially fair, since – not least in order to secure greater popular support...
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Greece: an entirely political crisis (Development and the crisis, Has austerity gone too far?)
18 May 2012
Now that the latest attempt at forming a national government has failed, the Greeks will be voting again on 17 June. If surveys of voting intentions are anything to go by, the crisis is only just beginning to get really nasty. The example of Greece is evidence of the need for reforms to be consolidated and socially fair, since – not least in order to secure greater popular support...
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Time to reform institutions (Has austerity gone too far?)
Vuk Vukovic Adam Smith Institute; LSE, 9 May 2012
Europe needs to move on beyond austerity and stimulus, and focus on reforming its institutional system that will address the misplaced incentives and the dependency mentality, and restore proper market signalization that will enable new patterns of specialization and increase productivity. There has been too much backlash between proponents of austerity and proponents of a fiscal stimulus....
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Too-Small-To-Survive: The need for further economic integration (Countries in crisis)
Georg Erber DIW Berlin, 20 April 2012
There has been much talk about the Too-big-to-fail issue of commercial banks after the global financial and economic crisis. Systemic relevant banks could not go bankrupt because of the severe systemic consequences for the whole global economy. The default of Lehmann Brothers has become the example why large banks need a guarantee that they would be saved in case of a major financial market...